Embattled Lowell water chief told to quit

LOWELL -- Dan Lahiff's days as executive director of the Lowell Regional Water Utility appeared numbered when City Manager Kevin Murphy tapped another department head to take over the investigation of water-billing issues at the utility from Lahiff.

And a memo Lahiff issued to employees after the independent probe began warning that they could be fired for sharing or discussing billing information -- which Murphy first learned of this Wednesday -- was the final straw for the manager, sources told The Sun.

The embattled Lahiff has been asked to resign from his position by today or be terminated.

Lahiff was expected to resign, but the city as of late Thursday afternoon had not received formal confirmation of that decision.

The ultimatum to Lahiff was delivered late Wednesday by Department of Public Works Commissioner Ralph Snow, Lahiff's supervisor, on behalf of Murphy.

Murphy emailed city councilors Thursday morning stating Lahiff is no longer at the department and that his employment with the city will end no later than Friday.

Murphy declined to comment on a personnel matter. He had not seen the billing memo Lahiff sent until provided it by The Sun on Wednesday morning.

The manager also was not pleased that Lahiff did not immediately act on his recent instruction that final water-meter readings take place more than one day a week, as they had previously, sources told The Sun.

Lahiff hung up his cellphone when contacted by The Sun seeking comment on Thursday.

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Lahiff was tapped by then-City Manager John Cox to become the Water Utility's executive director in 2003, replacing the retiring Edmund Tarmey. He began work in Lowell in 1989 and his budgeted salary in the current fiscal year was $101,703.

Murphy's decision to force Lahiff out of his role also followed sharp criticism from city councilors about the billing problems, as well as other issues at the utility under Lahiff's watch.

Councilors Rita Mercier and Ed Kennedy were the most critical.

Mercier said Thursday she supports the city manager holding the department head accountable for numerous issues at the Water Utility.

"There were serious problems in that department time and time again, and the problems rest with the person at the top," said Mercier, who first called for a report on underestimated water bills.

Councilor James Milinazzo said, "I think based on what's been reported and what's happened there, it was time for a change."

City Councilor Corey Belanger said he was concerned about Lahiff trying to hinder the billing probe, such as with the memo distributed to employees.

"If the investigation was obstructed, I stand by the city manager," Belanger said.

City Councilor John Leahy, a longtime friend of Lahiff's, declined to comment.

Councilors still want answers about issues at the Utility. City Councilor Dan Rourke has filed a motion for Tuesday's meeting requesting Murphy provide any city audits or independent audits of the Water Utility in the last five years.

The memo in question was sent one day after Wastewater Utility Executive Director Mark Young began an investigation into billing issues. It drew strong criticism from the union representing meter readers, AFSCME Local 1705.

"If this department head is going to continue to try to intimidate our employees and direct bargain with our employees, we will have no option but to take legal action against the city," Keith Rudy, Local 1705's business agent, told The Sun Wednesday.

Young has been tasked with reviewing why some residents have received exorbitant water bills and is expected to complete his report by the end of this week.

In some cases made public, residents received bills in the thousands of dollars because of estimated meter readings for years instead of actual readings.

Besides the billing problems, Lahiff and the Water Utility have also come under scrutiny in recent months because of problems with the sludge-containing lagoons across from the water treatment plant on Pawtucket Boulevard.

Earlier this year, the state Department of Environmental Protection sent the utility a notice of noncompliance because the lagoons' discharges into the Merrimack River contained more solid material than allowed by permit.

The DEP threatened criminal and civil action if required steps were not taken, including removal of sludge from one of the lagoons. The city is going to spend $3.5 million to upgrade the lagoon system.

Lahiff has been in the spotlight in prior years as well.

In 2012, Lahiff was fined $5,000 by the state Ethics Commission in connection with two previous ice storms in which he had a city-owned generator taken to his Haverhill home by a subordinate and connected to the property.

His department also faced a scrap-metal theft investigation, which resulted in the termination of two utility employees last year. Previously, two employees had been terminated in connection with the theft of gas.